The Australian government plans to enact law requiring streaming services to invest in homegrown content

Streaming Platform

Australia is set to enact laws mandating streaming platforms to invest a minimum percentage of funds in domestic content, as announced by official sources this week.

Services such as Netflix along with additional providers that have 1M subscribers must contribute a minimum of ten percent of their Australian spending alternatively 7.5% of revenue toward local productions.

The law will be introduced to parliament this week covering arts and educational content.

Government representatives stated this initiative is designed to protect acting jobs within the sector. The platforms have not yet commented publicly.

'Outstanding content'

"We have Australian content obligations on free-to-air television and pay television, however previously, we lacked assurance that we could see Australian narratives via digital platforms," a government representative stated.

"Since launching in Australia, digital platforms have created some extraordinary shows. These requirements will ensure that those stories – Australian content – will keep being produced."

According to reports, legislation will be introduced to Parliament in the coming days.

These updated content requirements were originally scheduled in place in mid-2024 however worries regarding potential conflicts with international trade pacts with the US led to the initiative being put on hold.

Officials cited difficulty conducting discussions with American counterparts during their an election.

Following the U.S. election, there was then concern about whether the regulations could lead American officials to implement retaliatory tariffs against Australia.

Currently, with the dust settled, and with strengthened ties between the countries, these regulations have returned on the table.

While professional associations applauded the announcement, streamers are still to issue statements regarding this development.

Back in 2022, digital services released a report highlighting their cultural and economic contribution on the national creative economy.

Nonetheless, it was seen by some as strategic positioning in anticipation at future regulation.

Industry decline

Current local productions on streaming platforms feature multiple series spanning various categories.

Similar to other nations, Australia's creative industries experienced challenges recently, partly because of reduced activity during the Covid-19 pandemic.

During the fiscal period recently concluded, funding for feature films and television dramas produced domestically fell by nearly 30%, according to industry data.